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Moratorium on Tenure Review Govt's only Option

16 November 2007

Moratorium on lakeside Tenure Review Government's only Option

The Council of Outdoor Recreation Associations (CORANZ) supports the Government's withdrawal of 65 lakeside pastoral leases from the Tenure Review process.

"Given the very high prices the Government has been paying to get land surrendered via South Island Tenure Review, and that it has been giving away prime subdivisible amenity lands for peanuts eg beside major lakes, the Government had no alternative but to withdraw from this very expensive and fiscally unworkable system created by the previous National government" CORANZ spokesman Dr Hugh Barr said.

Government announced yesterday that it would withdraw 65 pastoral leases from the Tenure Review process. All are within five km of major South Island lakes. Lessees can still negotiate deals provided lakeshores are protected from subdivision and development. They can also reduce rentals if they negotiate permanent public accessways across their lands. Lease rentals still remain at the miniscule 2% of market value.

"The way tenure review grossly favoured lessees near iconic lakes had led to grossly inflated prices for leases, far above their value for extensive grazing" Dr Barr said. "A moratorium of this sort would allow for some cooling off of the feeding frenzy of speculation in lease prices, and could reduce lease valuations significantly."

"My Council is pleased that the Crown still has other ways of progressing the outcomes desired by both lessees and recreational users from tenure review, via direct negotiation with lessees on a range of matters" Dr Barr said.

ENDS

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